KUALA LUMPUR: Bursa Malaysia edged lower at midday as losses in selected index heavyweights weighed on the benchmark, despite positive broader market breadth and strong August trade data.
Malaysia’s exports jumped 45.5% year-on-year to RM191.05bil in August, while total trade surged 43.4% to RM354.01bil.
The country recorded a trade surplus of RM28.09bil, marking the 76th consecutive month of surplus since May 2020.
At the midday break, the FBM KLCI fell 1.53 points, or 0.09%, to 1,673.21.
Market breadth was positive, with 510 gainers outpacing 460 losers, while 496 counters were unchanged. Trading volume stood at 2.016 billion shares valued at RM1.284bil.
Apex Securities expects the FBM KLCI to trade cautiously with a slight positive bias in the near term, supported by Wall Street’s overnight rebound and easing crude oil prices.
However, it said upside could remain capped as investors digest the US Federal Reserve’s signal of further monetary tightening.
Domestically, the brokerage said persistently weak market breadth suggests underlying risk appetite remains soft. It said this could limit the sustainability of any broad-based rebound despite relatively modest declines in the benchmark index.
“Overall, we expect selective bargain-hunting to emerge following recent weakness, but the KLCI is likely to remain range-bound until greater clarity emerges on the global rate trajectory and Middle Eastern geopolitical risks,” Apex Securities said.
Meanwhile, Malacca Securities expects the FBM KLCI to trade on a stronger footing, tracking overnight gains on Wall Street.
It said the recovery in global technology stocks could provide further support, with Inari remaining a recovery play on expectations of improving RF utilisation from the September flagship cycle and sustained AI-driven photonics demand.
The brokerage also favours Frontken, supported by its NT$920mil (RM118.2mil) acquisition of industrial land and factory buildings in Tainan to accommodate future capacity expansion.
Among the decliners, Petronas Dagangan eased 76 sen to RM20.32, Nestle slid 48 sen to RM90.04, Hong Leong Bank fell 32 sen to RM22.78 and Heineken declined 28 sen to RM14.20.
In contrast, technology and semiconductor stocks topped the gainers’ list. Malaysian Pacific Industries
surged RM2.46 to RM42.56, Unisem gained 30 sen to RM4.45, UMS Integration advanced 26 sen to RM8.39 and Pentamaster climbed 23 sen to RM5.45.
